Sec. 608. Election of directors of a merged Federal Home Loan Bank
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/bill/115/hr/6746/ih/section-608A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 7 of the Federal Home Loan Bank Act ( 12 U.S.C. 1427 ) is amended— in subsection (a)(1), by inserting and subsection
(d)after paragraphs
(2)through
(4); in subsection (b)— in the matter preceding paragraph (2)— by striking Each and inserting (1)(A) Except as provided in subsection (d), each ; by inserting
(B)before No person ; by inserting
(C)before As used ; and in the third sentence— by striking this subsection and inserting subparagraph
(A); and by striking home loan bank and inserting Home Loan Bank ; and in paragraph (2)(A)(ii), by inserting or subsection (d)(4), if applicable, after paragraph
(1); by striking subsections (c), (d), and (h); by redesignating subsections (d), (e), (f), and
(g)as subsections (e), (f), (g), and (h), respectively; and by inserting after subsection
(b)the following: The Director shall designate the State in which each member of each Federal Home Loan Bank shall be deemed to be located for the purposes of this subsection and subsections
(b)and (d), and may from time to time change any such designation. If the principal place of business of any Bank member is located in a State within the district of the Bank of which it is a member, the Director shall designate that State as the State in which the member shall be deemed to be located for those purposes. The number of member directorships designated as representing the members located in each separate State in a Federal Home Loan Bank district shall be determined by the Director in the approximate ratio of the percentage of the required stock, as prescribed by regulation of the Director, of the members located in that State at the end of the calendar year next preceding the date of the election to the total required stock, as so determined, of all members of the Bank as of that same date. Except as provided in subsection (d), the following provisions shall apply to the allocation of member directorships among the States of a Bank district, notwithstanding the requirements of paragraph (2): In the case of each State, the number of member directorships designated as representing the members located in that State shall not be less than one and shall not be more than six. If at any time the number of member directorships designated as representing the members located in any State would not be at least equal to the total number of member directorships which, on December 31, 1960, were filled by officers or directors of members whose principal places of business were located in that State, the Director shall add to the board of directors of the Bank of the district in which that State is located such number of member directorships, and shall so designate the directorship or directorships thus added, that the number of member directorships designated as representing the members located in that State will equal said total number. Any member directorship so added shall exist only until the expiration of its first term. Notwithstanding any other provision of this section, the following requirements shall apply to the size and composition of, and the election of directors to, the board of any Bank created as result of the combination of two or more Banks under section 26: The management of a combined Bank shall be vested in a board of 15 directors, or such lesser number as the Director determines appropriate, consistent with the safe and sound operation of the combined Bank. The Director shall establish the respective number of member directorships and independent directorships for the board of the combined Bank such that— member directors shall comprise at least the majority of the members of the board of directors; and independent directors shall comprise not fewer than 2/5 of the members of the board of directors. The Director shall allocate the member directorships of the board of a combined Bank among the States of the Bank district in accordance with the requirements of subsection (c)(2), except that— no State shall be allocated more than two member directorships until every state has been allocated at least one member directorship; and if, after the Director has allocated all but one of the member directorships, there remain any States to which no member directorship has yet been allocated, then the Director shall allocate the remaining member directorship to represent the members located in all of the States that have not otherwise been allocated a member directorship. The directors of a combined Bank shall be nominated and elected as provided in subsection (b), except that, in the case of a member directorship that has been designated as representing the members of two or more States pursuant to paragraph (3)(B), the following requirements shall apply in lieu of those set forth in subsection (b)(1)(A): The directorship shall be filled by a person who is an officer or director of a member located in one of the States represented. Each member located in each State represented shall be entitled to nominate an eligible person to fill the directorship, and the member director shall be elected from persons so nominated by a plurality of the votes that those members may cast under subparagraph (C). Each member located in each State represented may cast a number of votes equal to the number of shares of stock in the Bank required to be held by the member at the end of the calendar year next preceding the election, but not in excess of the average number of shares of stock in the Bank required to be held at the end of that year by the respective members of the Bank located in those States. The following requirements shall apply to the selection of the individuals to serve as the initial directors of a combined Bank as of the effective date of the combination: The terms of office of any directors of the combining Banks who do not become directors of the combined Bank shall terminate as of the effective date of the combination. The individuals to serve as the initial directors of a newly combined Bank shall be chosen from among the incumbent directors of the predecessor Banks serving immediately prior to the effective date of the combination of those Banks and shall be— as designated by the Director in the case of a Bank created from a combination of two or more Banks pursuant to a reorganization under section 26(a); and as agreed upon among the merging Banks and approved by the Director in the case of a Bank created from a voluntary merger of two or more Banks pursuant to section 26(b). Each initial director of the combined Bank shall be entitled to serve for the remainder of the term of office that the director had with the predecessor Bank. Terms served as a director of a predecessor Bank shall be counted as being served as a director of the combined Bank for purposes of determining term limits under subsection (e)(3). Beginning with the first election of directors occurring after the combination of the predecessor Banks, the Director shall adjust the term of any directorship of the combined Bank as necessary to achieve and maintain the staggering of terms that is required under subsection (e)(2). Except as provided in paragraph (2), the term of each Federal Home Loan Bank director shall be 4 years. The Director shall adjust the terms of members from time to time as necessary to ensure that the terms of the members of the board of directors are staggered with approximately 1/4 of the terms expiring each year. If any person has been elected to each of three consecutive full terms as a director of a Federal Home Loan Bank and has served for all or part of each of those terms, that person shall not be eligible for election to a directorship of that Bank for a term which begins earlier than two years after the expiration of the last expiring of the three terms. The Director is hereby authorized to prescribe such rules and regulations as the Director may deem necessary or appropriate for the nomination and election of directors of Federal Home Loan Banks, including, without limitation on the generality of the foregoing, rules and regulations with respect to the breaking of ties and with respect to the inclusion of more than one directorship on a single ballot and the methods of voting and of determining the results of voting in such cases. ; in subsection (f), as so redesignated, by striking the first and second sentences; in subsection (h), as so redesignated— by striking home loan bank each place such term appears and inserting Home Loan Bank ; and in paragraph (1), by striking such bank and the bank and inserting such Bank and the Bank , respectively; in subsection (i)(1)— by striking bank and inserting Bank ; and by striking board and inserting Director ; in subsection (j), by striking bank and inserting Bank ; and by striking the second subsection (l), as added by section 1202(8) of the Housing and Economic Recovery Act of 2008.
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Sec. 608
Election of directors of a merged Federal Home Loan Bank
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